BEST PRACTICES IN TEACHING AND TRAINING BEST PRACTICES IN TEACHING AND TRAINING ENTREPRENEURSHIP AT UNIVERSITIESENTREPRENEURSHIP AT UNIVERSITIES

Novi Sad, May 25Novi Sad, May 25thth 2007 2007

The Case of MontenegroThe Case of Montenegro

Maja Drakic, PhD, School of Economics, University of Montenegro, Maja Drakic, PhD, School of Economics, University of Montenegro, PodgoricaPodgorica

Natasa Masonicic, Institute for Strategic Studies and Prognoses, PodgoricaNatasa Masonicic, Institute for Strategic Studies and Prognoses, Podgorica

Entrepreneurship – conceptual issues

• Entrepreneurs – only 3-5% of population

• Entrepreneurship and business in transition processes

• Entrepreneurship and prevailing way of thinking

Idea of Entrepreneurial Economy at the School of Economics in

Podgorica

• School of Economics – established in 1960• The old socialist system starts to fall apart

– ’80s • The discussions on democracy and private

initiatives• Reforms in SFRJ• School of Economics in Podgorica – The

future lies in new way of thinking• Young people create new way of thinking

New ideas

• How to implement free market idea in education system environment – students and teachers?

– Sovereignty of consumer (student) – freedom of choice

– Motivation and incentives – how to motivate a student

– Success is not a sin– Theoretical basis of the studies: free market

vs. state

School of Economics of University of Montenegro

• Radical changes of curricula in 1989/1990• Students’ Club of Entrepreneurs and its

importance • Postgraduate Studies “Entrepreneurial

Economy” founded by professor Veselin Vukotic in 1992

• Free market ideas • Introduction of PMB studies in 1995• Center for Entrepreneurship – founded in

1996 (CEED, Podgorica)

Economics can not be explained by economics only!

• Curricula are based on free market ideas

• Theoretical foundation of studies – entrepreneurial economy and free markets

Entrepreneurial Economy• Importance of entrepreneurship (individual

entrepreneurs);• Importance of freedom (economic and political)• Importance of institution (property, contract,

protection of property rights and contracts)• Importance of an individual (student student)• Importance of voluntary exchange• Importance of internationalization • Importance of giving incentives to an individual

• PMB concept – P stands for entrepreneurship– M stands for management– B stands for Business

• If you don’t study economics in this school to acquire KNOWLEDGE how to earn money, you waste your time!!!

• Easy transfer to ECTS system• Concept of PMB Studies enabled easy transition to

ECTS • School of Economics (academic studies) - 4+1, 4+2• School for Management (applied studies) – 3+2

Course “Business”

• ‘Business’ – required course at first year of studies

• Students learn how to prepare business

plan • Attitude toward entrepreneurship and

business

• Changes in the way of thinking

Department for Entrepreneurship and

Entrepreneurial Finance• 8th semester – students choose one of eight

departments - field of specialization

• Theoretical foundation of the Department: economic liberalism and free market ideas

• Main principle – theory is the best practice; practice is the best theory; Hayek’s concept of learning through attempts and mistakes

• Freedom of choice – brings responsibilities

See the world from different See the world from different angleangle!!

The year of 2007/08 – new beginning in entrepreneurial education in Montenegro?

Economic Reform Network

Concept Based on Clear Vision

Economic Reform Network (ERN)Economic Reform Network (ERN)

ISSPISSP CEEDCEED

CARACARAdata centerdata center

The Institute for Strategic The Institute for Strategic Studies and PrognosesStudies and Prognoses

The Center for Entrepreneurship and The Center for Entrepreneurship and Economic DevelopmentEconomic Development

MBAMBAMLFIMLFI

Montenegro LeasingMontenegro Leasingand Financeand Finance

Montenegro Business Montenegro Business AllianceAlliance

Business Business ConsultingConsulting

Business Business ServicesServices

The Center for Entrepreneurship &Economic Development

(CEED)

CEED Background

• CEED is the first independent consulting center in Montenegro established in 1993 within the School of Economics.

• Since 1998 CEED has operated as an independent organization.

• CEED has 5 offices and staff of 21 people.

CEED Structure

11 22 33 44

Service Activities

CEED

Business Consulting

CEED

Business Associations Development

Montenegro Business Alliance

(MBA)

SME Financing

Montenegro Leasing Fund

(MLF)

Development of services

Elements of the Service ActivitiesElements of the Service Activities

Research Research andand

AnalysisAnalysis

PolicyPolicyRecom-Recom-

mendationmendation

Media

AdvocacyAdvocacy MediaMedia

EducationEducationandand

TrainingTrainingPublishingPublishing

Achieved results

• Around 30 surveys prepared, conducted, results printed and distributed. Many of them have become regular surveys (e.g., Barriers to Doing Business in Montenegro).

• CEED experts were involved in drafting 8 business-related laws. All of them were passed and are being implemented.

• New quarterly edition titled Montenegro Business Outlook was launched and 20 issues were published and distributed.

• Fruitful edition was launched – 9 leaflets that briefly explain business laws were published and distributed.

• 6 conferences and 35 round-tables were held to help the business community increase its influence on the major issues related to economic development.

• 12 reform-related publications were printed and distributed.

Development of consulting

• CEED originally offered consulting services to entrepreneurs and small businesses.

• The need to offer more complex consulting services led to a diversification of our portfolio.

• Currently, CEED has 12 consultants working on 11 major projects in addition to on-going consulting.

• CEED clients are: Control Risk; EBRD, JT Investment Sarbor (Slovenia), North Atlantic International Inc., UNDP Afghanistan, etc.

• CEED is constantly providing training to it’s staff. Now we have 9 people that are certified by SGS (Swiss base company) for ISO 9000 pre-certification in Montenegro.

Achieved results

• 500 business plans for individual entrepreneurs developed focusing on specific sectors: tourism, services, manufacturing, etc.

• 70 business plans for women entrepreneurs developed.

• 15 investment plans prepared.

• 20 market researches projects completed.

Montenegro Business Alliance

MBA Development

• MBA was founded in 2001 and had 10 members.• MBA is a coalition of Montenegrin companies,

entrepreneurs, business associations and foreign investors.

• MBA has established as the first private, voluntary, business umbrella association, whose membership is open to entrepreneurs, business, and associations.

• Today MBA has around 500 due paying members, employs over 15,000 workers.

Achieved results

• 12 Business-to-Business meetings; 4 Business forums; and 6 regular Assembly meetings have been held.

• 12 seminars throughout the country on the implementation of the new Enterprise Law have been conducted.

• As a result of the advocacy to pass the new Law on Accounting, the MBA gained membership on the Board of the Accounting Institute.

• MBA managed to increase concession to private sector in the area of wood processing by 5%.

• As a result of MBA’s advocacy effort, Ministry of Finance reduced by 10% the employer tax and reduced corporate tax from 20% to 9%;

• MBA has been accepted as a legitimate representative of the Montenegrin private sector by the WB group, IMF, WTO and other international financial organizations.

Overview of CEED Activities

Business Consulting

Training and education

LeasingLeasingFundFund

Advocacy and Media Services:

Research, Publishing,Corporate Governance

MBA MBA DevelopmentDevelopment

Independent organization. Independent organization. Self-financed through Self-financed through

collection of dues.collection of dues.

Independent organization. Independent organization. Self-financed through Self-financed through

shareholders shareholders fees/payments. fees/payments.

The Institute for Strategic Studies and Prognoses

(ISSP)

Background

• ISSP was established in 1998.

• Today ISSP is an indispensable partner to the Montenegrin Government and to various international organizations (including USAID, EU, World Bank and IMF) involved in promoting economic reform.

• ISSP is looked to as the most trusted source of economic statistics, economic analysis, and policy recommendations.

• We established a new Center for Applied Research and Analysis (CARA) which provides regular research and analytical support to ISSP, and which has developed the biggest economic data base in Montenegro, and conducted the first measurement of economic freedom in Montenegro.

• ISSP and CARA have staff of 21.

• ISSP published 22 Working Papers on different topics to promote reform efforts.

• ISSP organized 25 roundtables and 20 seminars on different topics and launched a series of publications summarizing the roundtables called the Roundtable Edition.

• After 3 years of gathering data, doing calculations and analyses, ISSP produced the first accurate GDP calculation for Montenegro. It was accepted by the GoM, Central Bank and the key international organizations, such as the World Bank, IMF, and EU.

• ISSP co-organized a regional conference on energy with 100 participants from Albania, Bosnia, Croatia, Kosovo, Republic of Srpska, Romania, Serbia, and Slovenia and regional Conference: Economic policies for Viable Micro-State (Jun 2003).

• ISSP published 25 issues of Monet, which now consists of approximately 100 pages of economic statistics and analysis and has a circulation of approximately 250 decision-makers in Montenegro and another 500 in the region.

Achieved results

• ISSP published 12 Household Survey Reports.

• Macroeconomic Policy for the Central Bank was prepared by ISSP at the request of the Central Bank, on a variety of topics. This policy agenda was adopted by the governing board of the Central Bank.

• Economic Reform Agenda - ISSP supported GoM by managing the key economic areas and participating in the relevant working groups.

• ISSP assisted FIAS in preparing a diagnostic study on the investment environment for Montenegro.

• Completed the first Transition Report in cooperation with the G-17 Institute from Belgrade.

• Completed work on sectoral analyses in trade, banking and tourism, IT sector, maritime sector, agriculture and forestry.

Continuing from previous page

What we believe is important?

• Helping the recovery of the middle class.• Trying to keep young people in Montenegro by

offering them opportunities in the private sector.• Supporting a new class of entrepreneurs and

new segment of firms that arise from the bottom.• Supporting the Montenegro Business Alliance

as a future private Chamber of Commerce.• Moving towards greater regional cooperation.• Increasing training and education of

entrepreneurs and mid-level managers.• Increasing SME financing through leasing.

THANK YOU FOR YOUR THANK YOU FOR YOUR ATTENTION!ATTENTION!

Please Visit

www.psee.edu.cg.yuwww.isspm.org

www.visit-ceed.orgwww.visit-mba.org

Maja DrakicSchool of Economics, University of MontenegroInstitute for Strategic Strudies and Projections

majad@cg.yu

Natasa MasonicicInstitute for Strategic Strudies and Projections

n.a.masonicic@cg.yu

issp@cg.yu